McCain's Housing Recovery Plan lets Banks off the Hook

John McCain or Barak Obama ??  I am from AZ, so by default, a McCain Supporter.

However, the economic crisis is not a political issue. This is a national security issue and something we all need to work towards.

We desperately need a plan that will directly help housing.

Otherwise, foreclosures continue to mount, causing prices lower, and losses even greater to lenders, wall street and main street forcing us deeper into a recession.

Under the John McCain plan to help housing, if elected, would order the government to buy up bad mortgages to cut homeowners' monthly payments and as a result keep more homeowners in their homes.

For example, the government could buy a $200,000 subprime mortgage on a home now worth just $100,000, give the homeowner a 30-year, $90,000 loan with a 5 percent interest rate, and essentially eat the $110,000 difference.

That would effectively bail out the banks and lenders at 100% with taxpayer money.

Many experts believe that this may be the only solution to a spiraling housing market. However, Mr. Obama argue that the plan would cause the government "to massively overpay for mortgages in a plan that would guarantee taxpayers lose money and put them at risk of losing even more if home values don't recover,"

In my humble, but strong, opinion, we need to do anything and everything to get liquidity back in the banks. If not, real estate prices could drop drastically further with no end in sight.

However, we must own equity (shares) in these banks, lenders, etc... If the bailout works to avoid the catastrohpe that is threatened, then we need to share in the profits.

We cannot take all the risk for (much of which) has been bad lending practices and Wall Street greed.

We cannot let Wall Street and lender off the hook completely for much of which is their mistakes?

Let me know what you think?